Solana Price Declines 17.13% Amid Recent Crypto Market Turmoil
During recent fluctuations in the crypto market, Solana (SOL) experienced a 17.13% decline, according to CoinMarketCap data. This follows a peak price of $263.83 post-US Presidential elections in November. Despite this downturn, analysts at Glassnode express optimism about Solana's potential for recovery, noting that it has not set any higher highs in the past three weeks.
More Room For SOL Price Growth, Analysts Say
In a blog post on December 20, Glassnode, alongside analysts UkuriaOC and CryptoVizArt, provided insights into Solana's market conditions. They observed a positive net capital inflow since early September 2023, with daily peaks reaching $776 million. The majority of profit-taking came from coins held for 1 day to 1 week, 1 week to 1 month, and 6 months to 12 months, indicating interest from both short and long-term holders.
Glassnode utilizes the Market Value To Realized Value (MVRV) ratio to assess market overheating. An MVRV ratio above 1 suggests overvaluation, while below 1 indicates undervaluation. Currently, Solana's MVRV ratio shows sideways movement between the mean and +0.5 standard deviation range, suggesting a heated market but still room for growth before reaching an overheated state.
Solana A Stellar Investment So Far – Glassnode
Glassnode highlights Solana as a profitable asset, noting a 2,143% price increase since its low of $9.64 in November 2022. It outperformed Bitcoin and Ethereum on 344 out of 727 market days following the FTX collapse, reflecting strong market demand. As of now, Solana trades at $194.58, down 0.50% in the last day, with trading volume up by 18.94%, totaling $9.94 billion.
